SEED wins a national lending award

Monday

Mar 31, 2008 at 12:01 AMApr 1, 2008 at 12:00 AM

Twenty-five years of supporting local businesses got recognized in a big way for the South Eastern Economic Development Corporation recently as the lending organization was selected as the national recipient of the 2008 SBA Excellence in Lending Award. U.S. SBA Administrator Steven Preston will present the award in New York City on April 25 during "Small Business Week."

BY Beth Perdue Bulletin editor

TAUNTON, Mass. — Twenty-five years of supporting local businesses got recognized in a big way for the South Eastern Economic Development Corporation recently as the lending organization was selected as the national recipient of the 2008 SBA Excellence in Lending Award. U.S. SBA Administrator Steven Preston will present the award in New York City on April 25 during "Small Business Week."

SEED was chosen by the SBA based on its portfolio performance and growth in loan volume. It was the only certified development corporation recognized in the category of active SBA 504 loan portfolio under $100 million in 2007. A Utah CDC with a loan portfolio of more than $100 million was also recognized.

Since being selected for the award,

SEED has broken the $100 million mark and now has $102 million active loans in its current portfolio, Executive Director Maria Gooch-Smith said.

"This is a great honor for the SEED staff, and board and committee members who have provided invaluable guidance and advice over the last 25 years," she said.

According to Gooch-Smith, the SBA used SEED's records for the 25 years they have been in business to make the selection including the number of loans approved, how many are current, how many have been written off, etc.

"They took a look at all of that: how we handled our portfolio over the years and how we've grown the agency," she said.

"I was very pleased," she added, "I don't think anyone in this region has received one of these as far as I can remember."

Jim McEvoy, SEED's chair and co-regional president for TD Banknorth on Cape Cod also expressed pleasure at receiving the award. "I am so pleased that SEED is receiving this national recognition for the tremendous job done by a dedicated, experienced and knowledgeable staff over more than two decades," he said.

In 2007, SEED worked with the region's banks to approve 56 SBA 504 loans and close on another 55 loans, for a total of 111 loans representing $42.9 million. These loans leveraged $55.4 million in bank financing and private funds, and assisted with the creation of 637 new jobs.

One of the advantages that SEED has is that it can be flexible in ways that banks, with auditors and shareholders to account to, can't always be, Gooch-Smith said.

"We're very careful about the lending that we do, but with that being said, on the other hand we can be flexible on things like collateral," she said.

The organization can also bend when a business hits a temporary rough patch, she said.

"If someone comes to us and says we're in trouble, but we think we can turn this around, we tell them pay the bank first, we come second," Gooch-Smith said, "The banks can't wait that long, we can."

"Obviously, it has to be someone that we feel — look this is going to work," she added.

Allowing businesses extra time, like a recent decision to give Cape Cod inns extra time to get through a slow winter, are the good judgement calls that SEED makes with the help of an all-volunteer 40-member board and volunteer lending committees, Gooch-Smith said.